Unexpectedly the numbers were bad as the Industrial production contracted 1.6% in May from last year. The manufacturing sector, which makes up 76% of industrial production, shrank 2% from last year, the government data showed. The mining sector also contracted 5.7%. Incidentally, April’s IIP data was revised downward to 1.9% from 2.3% earlier. This is not good for the Indian economy at least in the short run.

On Friday, Excellent result by Infosys helped the Nifty to cross the 6000 mark. We will have to check how the market reacts to the IIP numbers in the initial hours. The quarterly earnings would set the direction of the market in the short term. This week we need to wait and see whether the Nifty can sustain above 6000! In our view the market is likely to struggle staying above 6000 at least in the short term.